AUD/JPY Price Forecast: Jumps to near two-week high above 110.50, bullish momentum prevails
The AUD/JPY cross jumps to near its two-week high around 110.70 during the early European session on Wednesday. The Aussie strengthens against the Japanese Yen (JPY) on hotter-than-expected Australian inflation data, which raises bets for a May rate hike from the Reserve Bank of Australia (RBA).
Data released by the Australian Bureau of Statistics (ABS) on Wednesday showed that the Consumer Price Index (CPI) climbed by 3.8% YoY in January, versus a 3.8% increase in December. The market consensus was for 3.7% growth in the reported period. Meanwhile, the monthly Consumer Price Index rose 0.4% in January, compared to the previous reading of 1.0%.
Technical Analysis:
In the daily chart, the near-term bias for AUD/JPY is bullish as price extends well above the 100-day exponential moving average, confirming a sustained uptrend and strong trend following the recent breakout. The latest Bollinger Bands show price pressing toward the upper band, signaling firm buying pressure and elevated volatility rather than mean reversion. RSI around 65 remains in positive territory but below extreme overbought readings, indicating bullish momentum is intact with no clear exhaustion signal yet.
Immediate support emerges at the rising Bollinger middle band near 109.10, where pullbacks could regroup buyers. A deeper setback would target the 107.00 zone, ahead of the 100-day EMA around 104.60, which defines the broader bullish line in the sand. On the topside, initial resistance comes at 111.00, with a sustained break opening the way toward the 112.50 region as the next upside objective. As long as price holds above 108.50, the path of least resistance remains to the upside.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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